ANALYSIS OF THE DYNAMICS OF THE MAIN INDICATORS OF MONETARY POLICY IN UKRAINE

Abstract

The article reveals the essence of the concept of monetary policy, analyzes its definition by various scientists and scholars, and determines that monetary policy is a basic component of financial policy of the state, aimed at stable provision of the national economy with the right amount of money, increasing cash efficiency, accumulation funds of economic entities and their involvement in the banking sector, effective allocation of credit resources for the needs of sustainable development of Ukraine’s economy. The main monetary indicators that characterize the state of money circulation are presented, they include: money supply (money value), discount rate, inflation index and exchange rate. The dynamics of money supply change in Ukraine is studied. The number of monetary aggregates is determined, which include: M0 (cash in circulation outside the bank), M1 (M0 and transferable deposits in national currency), M2 (M1 and transferable deposits in foreign currency and other deposits), M3 (M2 and securities except for shares) operating in Ukraine, and their characteristics. The essence of the concept of discount rate is determined and its influence on the cost of loans provided by the National Bank of Ukraine to commercial banks, which changes the demand of the population for a consumer loan. The dynamics of the discount rate of the National Bank of Ukraine for 2014-2021 is also analyzed. The concept of inflation is defined, the consumer price index at the end of each period of 2014-2020 is considered and the dynamics of the inflation index is analyzed: the reasons for the rapid development of inflation in 2014-2015, declining rates in 2017-2020 and the forecast inflation at the end 2021-2022 are shown. The analysis of the average exchange rate (against the US dollar) in the banks of Ukraine for the period 2014-2021 is conducted and the consequences of sharp fluctuations in exchange rates, which contribute to the loss by Ukrainians a significant part of foreign currency savings are determined. The article proposes measures to protect citizens’ savings from the appreciation of exchange rates against the hryvnia: preservation of currency values in banks and insuring them against depreciation of exchange rates.